Clean Price, Dirty Price and Accrued-Interest Calculations

Clean Price, Dirty Price and Accrued-Interest Calculations - Article

Bond quotations normally show the **clean price**, while the buyer actually settles at the **dirty price**, which includes accrued coupon interest. This article explains clean price, dirty price, accrued interest, broken-period interest, settlement consideration, the Indian Government-security 30/360 convention, and common numerical traps. It helps CAIIB BFM learners correctly identify the amount quoted, accrued, and actually paid in bond transactions.